The consultants McKinsey previously found that companies in the top quarter for gender diversity on executive teams were 25% more likely to have above-average profitability compared with those in the fourth quartile, and its research showed the “strong business case for both gender diversity and ethnic and cultural diversity in corporate leadership”.
Paul Sesay, an industry expert and the founder of the National Diversity Awards, said rather than drop DEI, some UK businesses might merge it with environmental, social and governance (ESG) principles, which emphasise ethical behaviour, to avoid backlash.
Amid concerns for DEI in the UK, the equalities minister, Seema Malhotra, said the government had an “absolute commitment” to tackling racial inequality and diversity and inclusion.
Morrissey, who chairs the Diversity Project, a cross-company investment and savings industry initiative, said they had received calls from employees concerned by unfolding developments, and she was worried companies might think “it’s all over, there’s no point in us trying any more”.
He said there was an understanding in UK business that there was further to go, and while “middle management” across sectors had seen “significantly more progress” since 2020, change was a “lot slower” when it came to chief officers and that when black professionals “do reach the top, they have to prove themselves so much more”.
